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Should I leave my job? Stats inside. Please weigh in FW community. Archived From: Finance

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Hi, I am in my mid 20s and looking for some advice on whether or not I should leave my current job.

Job A - Technology (Hardware & Software) - Fortune 250 company
65K Salary + 5K bonus
401K matching - 100% up to 6% of salary -- I match fully
10K Tuition Reimbursement -- I do plan on using this

Job B - Internet Security - Emerging global company offices around the world, growing and hiring rapidly.
80K Salary + Higher title
No bonus program (HR is looking into it)
No 401K matching (HR is looking into it)
No tuition reimbursement (HR is looking into it)
10 minutes longer commute

EDIT: I will only be using $5K of the $10K reimbursement per year.

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So, with your 401k match, your current employer is paying 68,900 + 5k bonus, which brings you to $73,900.

I'll leave out the tuition reimbursement, because you haven't said if you use it (many places offer reimbursement; not everybody takes them up on it, or takes them up on it for the full ammount).

The other places is $80,000.

Is $6,100 and a higher title worth an extra 20 minutes commuting each day? I'd do it, though I would make it known to your current company that you have an offer and give them the chance to match it first.

Note, this recommendation could change if you really make use of the tuition reimbursment.

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Which company is Job B at? Rapid hiring sometimes leads to rapid layoffs in the not-too-distant future.

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Yes.

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I do plan on using the tuition reimbursement.

I also feel that the higher base salary can be used down the line. Every employer always wants to know how much you made at your previous job.

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"HR is looking into it" = "likely not going to happen, but we'll say HR is looking into it if it means you'll come work for us"

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"A Vakil"

are you a lawyer by any chance?

What industry is Job B "rapidly hiring" ?

I would stick with Job A (job security vs brand consistency)

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Which job do you want to do more? Which gives you greater skill and chance to learn? Which is the field you want to move towards. How are benifits?
Other things come into play here. Which boss do you like more?

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SonorityGenius said:"A Vakil"

are you a lawyer by any chance?

What industry is Job B "rapidly hiring" ?

I would stick with Job A (job security vs brand consistency)

Not a lawyer, but I know where you are going with that comment.

Job A - Technology (Hardware & Software) - Fortune 250 company
Job B - Internet Security - Emerging global company offices around the world,

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So based on your current needs it looks like the following:

65,000 +5000 = $70,000 salary
Then you have either $3900 or $4200 (Not sure if it’s paid on the total with bonus) 401K match if you do the max and there is no Tax on that amount as well.

The $10,000 I am not sure if it will show up on your W2 as a Taxed income or Un-taxed income. Reading through Publication 970 on the IRS website I am unclear if you have to declare it as income.

Total for Job A looks like an $80,000+ total and if that is the case switching to Job B might net you only a breakeven monetary value. The Higher/Bigger title is more of a long term investment in most cases but then again the Education Degree towards with the $10K is paid is also a long term investment.

Shahhere

PS. Just become A Vakil

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You have to think about whether or not your enjoy your job at Company A and the reason behind seeking employment at Company B in the first place. If the only things that you need from Company A are more money and a better title, then you should ask for it without mentioning that you were offered a job at Company B. Otherwise, you are in a buyback situation which is never a pleasant thing and usually leads to either you or the company terminating the relationship within the next 12 months.

Before seeking employment elsewhere, it is good to write down the reasons why you are looking. When you have an offer on the table, it is difficult to look back and think about these reasons. Typically, you'll be thinking about the more money and better title and Company B or your friends and memories at Company A.

The term 'HR is looking into it' doesn't mean anything once you have started and no longer have any hand. If you really want one of these benefits, negotiate it beforehand.

Other things to consider are time off (vacation days, sick days, holidays), corporate culture, typical raises and how often, industry, etc.

You are right; a higher base salary will set the tone for higher salaries down the line. The 'higher title' is meaningless, but you won't realize this for another 5 years.

If you really want the job at Company B and are just hung up on the bonus program and tuition reimbursement, negotiate for it and get it in the offer letter. If they can't give these to you, ask for more money. You probably can't negotiate 401K matching. Start out with something like, "I am excited about the career opportunity with Company B but there are a few things I would like to discuss..."

GFY for posting this. Don't take the reds personally. Perhaps you should post this in 'off topic' unless you are looking for a purely financial answer. You seem intelligent enough to figure it out based purely on finances.

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lindylady said:Which job do you want to do more? Which gives you greater skill and chance to learn? Which is the field you want to move towards. How are benifits?
Other things come into play here. Which boss do you like more?

Thanks so much so far everyone.

Job A & B are in the same space.

Not sure where I would learn more. Job A is huge and has many different parts, Job B is much smaller.

My boss now is great.

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With your young age, I would focus more on what job will be the best opportunity in the next 5 years. Since you have an offer you can have a frank conversation with Job A. If they make any concrete promises get them in writing. I toughed it out in a lower paying job because I knew the eventual rewards would be worth it. Year over year my salary is up 4 times, because of two raises and a bonus. I would obviously be kicking myself if I choose another job for a quick $10k gain.

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AVakil said:Not sure where I would learn more. Job A is huge and has many different parts, Job B is much smaller.

I spent 6 years at a fortune 100 company and had 4 different jobs. IME, there is potential to move up within the company and learn alot more. Typically with a smaller company, you'll wear many hats and get a lot of company specific knowledge.

The 'boss' factor is very important. It's no fun working for a boss you don't get along with.

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No

The added commute time alone at your old hourly rate = about 3K/yr (86 hours a year) not counting gas. If the new job requires more hours it is more of a hit. I don't even consider a job if it is less than a 10% overall bump and you are way under that with the added commute time.

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No

(HR is looking into it) - is a flag

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shahhere said:So based on your current needs it looks like the following:

65,000 +5000 = $70,000 salary
Then you have either $3900 or $4200 (Not sure if it’s paid on the total with bonus) 401K match if you do the max and there is no Tax on that amount as well.

The $10,000 I am not sure if it will show up on your W2 as a Taxed income or Un-taxed income. Reading through Publication 970 on the IRS website I am unclear if you have to declare it as income.

Total for Job A looks like an $80,000+ total and if that is the case switching to Job B might net you only a breakeven monetary value. The Higher/Bigger title is more of a long term investment in most cases but then again the Education Degree towards with the $10K is paid is also a long term investment.

Shahhere

PS. Just become A Vakil

Hi Shahhere,

According to this link tuition reimbursement is taxable.

This was very helpful. thanks.

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IME, tuition is only taxable above $5250 unless it doesn't conform to certain rules (different industry, etc.). My company has a 10K tuition reimbursement on Master's programs and I was only taxed for amounts over $5250.

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No

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